South Korea’s Financial Services Commission has issued fines totalling over KRW2bn ($1.54m) to three unnamed global hedge fund firms over a series of alleged unfair stock transactions, according to a report by Reuters.
The report cites a statement from the FSC as confirming that the funds have been accused of violating the country’s capital markets law and conducting alleged naked short selling. The case is now reportedly being referred to prosecutors for investigation.
The fines follow a decision by the government in March to sanction two global firms for naked short selling in the local stock market, for the first time under a new set of regulations.
On 5 November, South Korea introduced a ban on stock short-selling until June 2024 in a bid to ‘improve rules and systems’.
